The IPO for the Thailand Future Fund (TFFIF) received an overwhelming welcome from investors, with the portion allocated to retail investors oversubscribed by 60%, says the State Enterprise Policy Office (Sepo).
Strong interest in the infrastructure fund has compelled Sepo and selling agents to think twice about the portion offered to small investors, Sepo director-general Prapas Kong-ied said without specifying the size of retail investors' share.
The cabinet recently approved more than half of the TFFIF's 4-4.47 billion units to be offered under a small-lots-first basis to retail investors.
The cabinet resolution had also called for 45% of future revenue from the Chalong Rat Expressway and Burapha Withi Expressway, both owned by the Expressway Authority of Thailand, to be used to back TFFIF's first batch of units, with an expected fund-raising size of 45 billion baht.
Proceeds from the fund's IPO will be used to finance construction of the expressway linking Rama III Road-Dao Khanong and the Western Outer Ring Road, worth 30.4 billion baht, as well as the third stage of the long-delayed northern expressway linking the Kasetsart intersection and Nawamin Road, also known as the N2 section, worth 14.4 billion baht.
TFFIF's subscription period for retail investors closed yesterday, while that for institutional investors will start on Monday.
Mr Prapas said the largest subscription value stood at 50 million baht per investor.
"The subscription from retail investors was overwhelming and significantly beyond our expectations, so we will remove cooperatives and the Government Pension Fund from the retail investors list," he said. "These institutional investors originally were included in the part of retail investors, as we had estimated that small investors' demand would not be significant.
"Retail investors with high subscription value won't get all they need."
With high demand from retail investors, the number of TFFIF units to be offered to institutional investors could be reduced, but Sepo will try to keep an appropriate ratio to balance against retail investors who are more susceptible to sensitivity, Mr Prapas said.
"We expect to announce an allocation list after the subscription period of institutional investors ends, likely late next week," he said.